The lack of lithium is expected to raise the price of EVI by about $ 1,000, as the value of the mineral has already risen by 500 percent. Governments and manufacturers are pushing for larger EVs, with automakers scrambling to secure the supply of valuable raw materials needed to make batteries.
However, Stalantis may seem a bit relaxed, as the company has confirmed the supply of lithium from Regulated Thermal Resources Limited (CTR). CTR operates in the Salton Sea, California, which was formed in 1905 after the flooding of the Colorado River. The 343-square-mile lake is home to huge geothermal deposits of lithium.
CTR, already not unfamiliar with the automotive deal, has signed a larger deal with General Motors to supply 60,000 tonnes of lithium.
Read: New Indiana plant will help avoid EV deficit, Stellantis says
CTR will supply stalantis with 25,000 metric tons of lithium hydroxide per year for a period of 10 years under contract. “Ensuring we have a strong, competitive, and low-carbon lithium supply from various partners around the world will enable us to responsibly fulfill our aggressive electric-vehicle production plans,” said Carlos Tavares, CEO of Stellantis.
The deal is an important part of the puzzle as the company plans to offer more than 35 battery-electric vehicles across its U.S. portfolio by 2030. Earlier this week, Tavares predicted that a battery shortage was on the horizon for 2024 or 2025, and the CEO predicted a raw material shortage in the industry a few years later.
An agreement with Samsung SDI to build a battery plant in Indiana was seen as another important step for the company to overcome EV supply chain problems. The deal, announced earlier this week, will see Samsung sell SDI production cells and modules for various Stalantis EVs in North America.